Why AirAsia CEO is confident in its super-app gamble

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Today we look at,

• AirAsia’s response to critics of its super-app plans
• A Singapore-based coffee startup raises money from Razer’s VC arm
• Other newsy highlights such as Traveloka’s US$400 million IPO plan and Ant Group’s drop in profit

PREMIUM SUMMARY

Can an airline become a super app?

We have had super apps that started out either as a chat messenger or a ride-sharing platform. But an airline transforming into a super app? That’s almost unheard of. So it’s not surprising that critics are somewhat skeptical of Malaysia-based AirAsia’s ambition to morph into one. AirAsia Group CEO and founder Tony Fernandes, however, is confident the budget carrier will prove the doubters wrong.

• Prepared to take off decades ago: Fernandes claims that this super-app dream was not a spur-of-the-moment decision, and that he had come up with the plan decades ago. He also has a winning formula: “I don’t need billions [of dollars] to compete; I’ll have market share because I’ve got a brand, data, low customer acquisition cost, and the model’s already been built for us.”
• AirAsia Digital has arrived: His plan is in the works: In the first quarter of 2021, the airline’s digital venture arm, which runs services such as food delivery, logistics, and payments brought in 39% of AirAsia Group’s revenue. The segment had only accounted for 8% of the company’s topline last year.
• Riding with a unicorn: Fernandes’ latest gamble? Acquiring Gojek’s Thailand business. Fernandes has previously said that the Jakarta-headquartered startup was the only unicorn he “truly respects.” While both firms could benefit from this partnership, Gojek’s Thailand arm is its smallest, has only four services, and was in the red from 2019 to 2020.

Read more: Tony Fernandes responds to critics of his AirAsia super-app gamble

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